Lower Korean Stock Market on 15 May = NPS's Plan on 28 May + Profit Taking on AI/Tech Stocks?
On 15 May, the NPS (the big whale) announced that it plans to finalize the mid-term asset allocation plan on 28 May.
All in all, the NPS is likely to raise the 5% limit for strategic and tactical asset allocation.
The exact amount that it raises by remains uncertain. If NPS does not raise this limit enough, that could result in a major BEARISH pressure on the Korean stock market.
KOSPI and KOSDAQ declined by 6.1% and 5.1%, respectively on 15 May. Samsung Electronics (005930 KS) and SK Hynix (000660 KS) declined by 8.6% and 7.7%, respectively on 15 May as well. I think there were two major reasons for this.
First, it appears that some investors were just taking profits on major AI/technology and other stocks that have performed really well this year (such as Samsung Electronics and SK Hynix). Second, NPS (the big whale) announced that it plans to finalize the mid-term asset allocation plan on 28 May. In this insight, I focus on the latter.
The chart below provides NPS’s asset allocation as of end of February 2026. Global equity is largest (35.6%), followed by domestic equity (24.5%), and domestic fixed income (18.5%).
Source: NPS
